New Delhi, Oct 22 (IANS) India's business optimism was flat in the fourth quarter of this year but 3 per cent lower than Q4 2025, indicating continued caution among businesses, according to a report released on Thursday.

According to a report by Dun & Bradstreet, the Business Optimism Index (BOI) came in at 111.7, unchanged from 111.8 in Q3 2026.

It points to an uneven outlook with businesses remaining cautious about domestic demand and profits.

While sentiment improved among medium enterprises and global economic confidence edged higher, confidence remained uneven across business sizes.

Arun Singh, Chief Economist at Dun & Bradstreet India, said, “India’s stable headline business optimism masks a more cautious outlook for demand and profitability. Domestic order and profit optimism have reversed their Q3 gains, suggesting that resilience has yet to translate into a sustained, broad-based improvement in business confidence.”

He said September retail inflation at 5.54 per cent and food inflation at 7.74 per cent has put pressure on household purchasing power, while the RBI’s 25-basis-point hike to 5.50 per cent and the US Federal Reserve’s September increase have added financing pressure.

According to the report, domestic-order optimism declined 4.4 per cent quarter-on-quarter and 14.9 per cent year-on-year to 67.2, its lowest level since Q3 2024.

In addition, utilities recorded the highest optimism at 83.3, followed by food manufacturing at 79.2.

Notably, sales optimism moderated 0.9 per cent quarter-on-quarter and 7.8 per cent year-on-year to 74.4, while export-order optimism remained broadly unchanged at 59.3, up 0.1 per cent quarter-on-quarter but down 8.8 per cent year-on-year.

Profit optimism declined 1 per cent year-on-year to 67.5 even as selling-price optimism increased 2.7 per cent quarter-on-quarter.

Employment optimism remained broadly stable at 62.7, edging down 0.3 per cent quarter-on-quarter and 5.3 per cent year-on-year.

--IANS

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